Case
Solar Energy Companies I - VI
Assisting 400 Danish owners of 6 Danish companies (AIF’s), owning 18 financially distressed solar parks in Italy with taking over the management of the companies from the former asset manager who went bankrupt.
What is it?
18 solarparks located all over Italy. The companies behind urgently needed a new manager.
What did we do?
We have gone through and optimised all aspects – both financially and technically
What was the outcome?
Improved management, reduced cost, and are working to improve the solar parks production
A Complicated Situation
6 danish companies had invested in an italian fund, investing in 18 solar parks located all over Italy.
The danish fund manager ran into problems, and the companies urgently needed a new manager to live up to danish legislation.
The company construction is very complex and non-transparent. At the same time, the solarpark was suffering from very poor local mangagement, creating a severe difficult and frustrating situation for the owners
A Perfect Match
As Momentum is not registered as AIFM, we entered into a partnership with Alternative Equity Partners A/S (AEP) in Copenhagen. AEP being specialised in Fund Management of companies regulated by the Danish Financial Supervisory Authority (“Finantilsynet”).
Momentum being specialised in asset management “on the ground”. The combination of the two companies’ expertise created a good solution for the owners, and we were elected as new managers for the funds in june 2017.
Since we took over the management, several meetings has been held between Momentum/AEP and the managers and operators of the PV plants in Italy, lawyers etc.
Paving the Way for the Future
We have created tranparancy and optimized the setup by “moving closer” to the Italian fundmanager.
We have analysed cashflows and contracts entered by the Italian managers, and we are continuously challenging the local manager to implement better solutions and improve free cashflow.
The fund paid out dividend for the first time in 4 years and the clear goal is to improve the local management of the funds substantially, aiming for a yearly dividend from the fund to the ultimate owners in Denmark.
It is a very complex case, but we have already improved the management and reduced cost, and are continuously working to improve both the solar parks production and cut costs further to normalise the situation further.
Moving Forward Together
"A partnership between Momentum and AEP have proven very successful. Each part contributing with their competences and experiences, Momentum within practical experience from asset management of solar projects and AEP within fund management of AIF's regulated under the financial authorities as AIFM. The process is still going on, but substantial changes are being implemented to improve investors situation both in Denmark and in Italy."
